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Kaleb wishes to purchase a $ 1 , 0 0 0 bond from Mason, who needs the money. There are 7 years remaining until the

Kaleb wishes to purchase a $1,000 bond from Mason, who needs the money. There are 7 years remaining until the bond matures and interest payments are made semiannually. Kaleb decides to offer Mason $950 for the bond because he wants to earn exactly 8% per year compounded semiannually on the investment. What is the effective annual bond rate of interest?
9.16%
8.24%
7.18%
6.21%

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